AutoBeta(AutoBeta.net)03/28 Report--

China's passenger car sales fell nearly 10 per cent in 2019 from a year earlier, and car dealers generally saw a decline in sales throughout the year, leading to a decline in performance, but luxury-branded passenger cars bucked the trend, with annual sales of 3.143 million vehicles up nearly 10 per cent from a year earlier. In this context, the main operation of luxury brand 4S stores of several dealer groups, last year's performance rose against the trend, more and more profitable.

Us East Automobile: net profit increased by 53.4%

On March 27th, China Meidong Automobile Holdings Co., Ltd. issued an annual results announcement for 2019, with a total revenue of 16.21 billion yuan, an increase of 46.5 percent over the same period last year, and a net profit of 558 million yuan, an increase of 53.4 percent over the same period last year.

Luxury brands remain the core source of revenue. During the year, Meidong Motor expanded through new stores and same-store growth, and the sales revenue of new passenger cars rose 47.1% year on year to 14.384 billion yuan, of which luxury brands accounted for 81.3% of the new passenger car sales revenue.

In 2019, sales of new passenger cars from BMW, Porsche, Lexus and Audi recorded 5.535 billion yuan, 3.074 billion yuan, 3.024 billion yuan and 60 million yuan respectively, accounting for 38.5%, 21.4%, 21.0% and 0.4% of new passenger car sales, respectively.

In terms of sales, Meidong Motor sold a total of 49359 new passenger cars for the whole year, up 30.3% from the same period last year. Luxury brands remain the main source, with BMW, Porsche, Lexus and Audi accounting for 60.8 per cent of total sales, at 16827, 4006, 8922 and 237, respectively.

In addition, after-sales service revenue of Meidong Automobile rose 41.3% year on year to 1.826 billion yuan last year.

In terms of the number of 4S stores, East American Motor opened nine new stores in 2019, bringing the total to 58. Among them, there are 24 BMW 4S stores, 6 Porsche, 14 Lexus, 1 Audi, 12 Toyota and 1 Hyundai.

Yongda Automobile: net profit 1.569 billion yuan

Yongda Automobile Group is one of the top ten car dealers in China, mainly engaged in luxury brand dealers. Yongda's total revenue in 2019 was 62.707 billion yuan, an increase of 13.4 percent over the same period last year, and its net profit was 1.569 billion yuan, an increase of 18.4 percent over the same period last year.

The luxury car business has performed well. Yongda sold 197400 new cars in 2019, up 11.6 per cent from 2018, of which 128600 luxury models were sold, up 15.5 per cent from a year earlier.

Revenue from new car sales for the whole year was 52.935 billion yuan, an increase of 13.3 percent over the same period last year, of which revenue from new car sales of luxury brands rose 14.5 percent year-on-year to 43.769 billion yuan. New car sales from luxury brands accounted for 82.7% of total new car sales.

In addition, Yongda Automobile's after-sales service business, including maintenance services and car extension products and services, grew in 2019, with revenue reaching 8.897 billion yuan, an increase of 13.5 percent over the same period last year.

In terms of outlets, Yongda Motor opened two new Porsche 4S stores, three Volvo 4S stores and a BMW 4S store in 2019, and acquired Yingzhijie Asia Pacific and its subsidiaries for 830 million yuan. it includes a Porsche, a Mercedes-Benz, a Lexus 4S store and a Tesla authorized maintenance center.

By the end of 2019, Yongda Motor has opened 208 authorized outlets, including 119 luxury and ultra-luxury brand 4S stores, 55 high-end brand 4S stores, 17 luxury brand city showrooms, 9 new energy brand 4S stores and so on.

So far, Yongda has represented Porsche, Bentley, Aston Martin, Jaguar, Land Rover, Mercedes-Benz, BMW, Audi, Lincoln, Volvo, Infiniti, Cadillac, Lexus and other luxury brands.

Zhongsheng Group: profit 4.5 billion

As the second largest automobile dealer group in China, Zhongsheng Group holding Co., Ltd. recently issued an annual performance announcement in 2019. The company's total revenue in 2019 was 124.0425 billion yuan, up 15.1% from the same period last year, while the profit attributable to the owner of the parent company was 4.502 billion yuan, up 23.8% from the same period last year, according to the Zhongsheng Holdings performance announcement.

In 2019, Zhongsheng Holdings increased to 360 dealerships, with total sales of 455700 units, an increase of 10.6 per cent year-on-year. Among them, luxury brands sold 228000 units, accounting for 50 per cent of the group's total sales.

Total revenue from new car sales was about 106.199 billion yuan, an increase of 13.9 percent over the same period last year. Among them, Mercedes-Benz is the group's auto brand with the highest revenue from new car sales, accounting for about 29.3% of the total new car sales.

The revenue of after-sales service and boutique business was 17.843 billion yuan, an increase of 22.9% over the same period last year, accounting for 14.4% of the group's total revenue.

As of December 31, 2019, the total number of Zhongsheng Group dealerships increased to 360, an increase of 42 over 2018, including 33 luxury brand stores and 9 mid-range brand dealerships. So far, Zhongsheng Group has 208 luxury brand dealerships and 152 high-end brand dealerships.

Zhongsheng Group represents luxury brands such as Mercedes-Benz, Lexus, Audi, BMW, Volvo and Jaguar Land Rover, as well as mid-range brands such as Toyota, Nissan and Honda.

Generally speaking, although passenger car sales in China continue to decline, the reverse growth of luxury car sales and considerable profit levels allow dealers to maintain steady performance growth. The rapid growth of luxury car sales is mainly due to the continuous upgrading demand of domestic consumption and the extended product line of luxury brands.

Yongda Automobile Group said it expects China's luxury passenger car market to continue to grow in the next few years, driven by upgraded consumer demand and consumer policies. With a good brand image and service reputation, as well as constantly improving the competitive advantage of domestic products, luxury car brands will also become the most stable growth segment in the overall passenger car market, with an annual compound growth rate expected to remain at about 8-10%.

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